The S&P 500 Index breaks through 6977 points to reach a new all-time high, and the market enters a strong start in 2026.

January 13, 2026, the three major US stock indices once again deliver good news. The Dow Jones Industrial Average and the S&P 500 both hit record highs, with the S&P 500 closing up 0.16% at 6,977.27 points, reaching a intraday high of 6,986.33 points. This means that on just the 12th trading day of 2026, the world’s most important stock market benchmark index has broken its all-time high for the third time.

Historic Moment

The US stock market at the beginning of 2026 demonstrated remarkable resilience. On January 13, despite a negative opening influenced by adverse news, the market staged a strong reversal. The S&P 500 rebounded sharply after an initial decline, ultimately closing at a record high of 6,977.27 points. The Dow Jones Industrial Average also performed well, rising 0.17% to close at 49,590.20 points.

The market’s strong performance was not accidental. In late December 2025, the S&P 500 had already shown signs of breaking out, surging past the psychological threshold of 6,900 points before the Christmas holiday.

Against the Odds

This historic breakthrough occurred in an unusual market environment. Just one day before the new high, Federal Reserve Chair Jerome Powell confirmed that a criminal investigation had been launched into the federal prosecutor regarding his testimony before the Senate Banking Committee. This news could have triggered market turmoil, but investors chose to temporarily ignore this political risk and refocus on positive economic fundamentals.

Jim Leventhal, Chief Market Strategist at Cerity Partners, pointed out that in the short term, the market is supported by many positive factors, including strong corporate earnings and upcoming CPI data.

Core Drivers

The driving forces behind the robust performance of US stocks in early 2026 are multifaceted. First, inflation data continues to improve, with December 2025 core CPI rising less than expected year-over-year at 2.6%.

The AI revolution continues to provide strong momentum for US stocks. In 2025, AI-related assets attracted continuous capital inflows, with Nvidia rising 36.8% for the year, reaching a historic market capitalization of over $5 trillion.

Institutional investors’ optimistic outlook on US stocks also supports this trend. JPMorgan has raised its 2026 target for the S&P 500 to over 7,500 points and believes that under further easing policies by the Federal Reserve, the index could break through 8,000 points.

Divergence Among Institutions

Despite the new highs in US stocks, there are clear disagreements among Wall Street analysts about future trends. In August 2025, Citigroup strategists predicted that the S&P 500 might rise to 6,900 points by mid-2026. JPMorgan is more optimistic, setting a baseline target of over 7,500 points by the end of 2026, with the possibility of surpassing 8,000 under certain conditions.

However, Barry Bannister, Chief Equity Strategist at Stifel, remains cautious, expecting the S&P 500 to fluctuate within a wide range of 6,500 to 7,500 points in 2026.

Cryptocurrency Lagging Performance

While the S&P 500 repeatedly hits new highs, the cryptocurrency market shows a different picture. Since November 2025, Bitcoin’s price has fallen about 20%, while the S&P 500 has increased by 1% during the same period.

This performance gap has resulted in Bitcoin lagging behind the S&P 500 by 21 percentage points. As of January 14, 2026, Bitcoin (BTC) is priced at $95,459.4, up 4.51% in the past 24 hours. Ethereum (ETH) performed slightly better, currently priced at $3,336.54, with a 7.54% increase over 24 hours. Market analysis suggests that this lag may present opportunities for a “catch-up” in 2026.

Market Structural Changes

The current structural features of the US stock rally are very evident. This is not a broad-based bull market but a structural rally heavily reliant on certainty-driven growth logic.

By the end of 2025, the top 30 AI-related stocks accounted for 44% of the total market cap of the S&P 500, with market concentration reaching a historic high. Meanwhile, traditional sectors continued to face pressure, with consumer staples becoming a drag for the year. This structural divergence means that investing in the S&P 500 does not equate to true diversification, demanding higher stock-picking skills from investors.

Opportunities from Cryptocurrency Correlation

The correlation between traditional financial markets and cryptocurrencies is changing. Deutsche Bank has set its year-end 2026 target for the S&P 500 at 8,000 points, and this optimistic outlook could positively influence risk appetite in the crypto market.

Historical data shows that when market risk appetite increases, Bitcoin and the S&P 500 tend to exhibit strong correlation. As the S&P 500 hits new highs, some market observers are beginning to consider the possibility of funds flowing from traditional markets into cryptocurrencies.

Discussions on the Gate platform suggest that if 2026 enters an easing cycle, US stocks and cryptocurrencies could rise together, provided liquidity conditions are favorable.

Platform Perspective

Against the backdrop of US stocks reaching new highs and cryptocurrencies seeking direction, assets on the Gate platform also show active trends. The GateToken (GT) is currently priced at $10.79, up 4.76% in the past 24 hours. From a platform perspective, the strong performance of traditional equities may influence the crypto space through two channels: one, indirectly via wealth effects driving capital inflows; two, directly through changes in risk appetite affecting market sentiment.

Gate’s analysis indicates that ample liquidity in US stocks could lead institutions to first position in US equities, with the wealth effects then spilling over into cryptocurrencies.

Looking beyond the historic high, the performance of the S&P 500 has already surpassed the most optimistic forecasts of 2025. As the index breaks the all-time high for the third time in early 2026, the market’s structural features become increasingly apparent — a complex picture driven by AI-fueled growth stories coexisting with traditional sectors losing momentum. While cryptocurrencies are temporarily lagging, history shows that performance disparities among assets often create opportunities for savvy investors. As the S&P 500 continues to explore new highs at 6977 points, global capital is re-pricing the “AI-driven new economic structure.”

In this market environment where clarity of main themes and structural dominance are key, the focus in 2026 may no longer be on finding broad-based rallies but on capturing subtle rotations and changing correlations among different asset classes.